▸▸▸Enroll in our 365 Days to F.I.R.E. Program! – Enrollment is now open for our class of 2024, 365 Days to F.I.R.E. program! As part of the program, you will get to attend our 2024 meetups in Portugal (with more than 500 people attending the meetups this year!), get assigned daily FIRE tasks to complete, participate in live monthly Q&A sessions with us, be broken into smaller accountability groups with other people in the program, attend quarterly book club meetings, get personal coaching from us (for those in the coaching plan) . . . and more!!! Enroll today!
▸▸▸Enroll in our Stock Market Investing Course for Financial Independence and Retiring Early: Enroll in our new 21 module, 4-plus hour stock market investing course with more than 30 handouts of summary notes, homework assignments, and resources. Learn how to research and select investments, how to determine your asset allocation, how to rebalance your portfolio, how to optimize your investments for tax purposes, how to automate your investments, and much more (including a 19-page Investment Plan to work on)!
▸▸▸Enroll in our FIRE Master Class: This FIRE Master Class is designed for people interested in pursuing financial independence and retiring early. In the Master Class, we explain how to live off of your investments during early retirement; how to withdraw money from your investment accounts to support your living expenses during retirement; how to calculate your FIRE number; new and creative ways that you can save money; new side hustles for making money; how to invest in the stock market and in real estate; we discuss healthcare options in retirement . . . and MORE!
▸▸▸Enroll in our How to Move to Portugal Course: A Step-By-Step Course to Relocating and Living in Portugal: This course is designed for people interested in moving to Portugal. In the course, we explain the visa process, the documents you need to submit for your application, and the step-by-step process that we took to obtain our visas; we explain the residency permit process and how we obtained our residence permit here in Portugal; we explain the process for buying and renting a house in Portugal; we discuss healthcare, school options, and setting up NIFs, we explain taxes here in Portugal, and MORE!
Our Rich Journey – How to Live Off Investments & Retire Early | Our Seven Account Strategy for Financial Independence: If you’ve seen our videos, you know that we are on the journey to F.I.R.E (financial independence retire early) – and any good F.I.R.E. plan involves a strategic draw-down strategy (i.e., a plan for withdrawing funds from different accounts throughout retirement). In this video, we discuss that plan! We discuss the seven investment funds we contribute to for FIRE and we discuss our plan for taking money from those funds in order to fund our early (and continuing) retirement. (Hint – it involves the 4% rule! 🙂
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Costly Stock Market Investing Mistakes You Can Avoid:
Our $800 Car | Choosing Financial Independence Over the Joneses:
ROBO-ADVISORS: Should You Invest with Them for Financial Independence? | Our Warning:
OUR STOCK PORTFOLIO UPDATE | We’re Rebalancing Our Portfolio (Ep. 6 – May 2019):
Best Vanguard ETFs (Exchange Traded Funds) for Financial Independence:
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How to Live Off Investments & Retire Early | Our Seven Account Strategy for Financial Independence
Achieving financial independence and retiring early is a dream for many people. The idea of being able to live off investments and have the freedom to pursue your passions without worrying about money is enticing. However, this goal requires careful planning, discipline, and the right investment strategy. In this article, we will outline our seven account strategy for financial independence and early retirement.
1. Emergency Fund:
Before embarking on your journey towards financial independence, it is essential to establish an emergency fund. This account should contain at least three to six months’ worth of living expenses, providing a safety net in case of unexpected emergencies or job loss.
2. Tax-Advantaged Retirement Accounts:
Maximizing contributions to tax-advantaged retirement accounts such as 401(k)s or Individual Retirement Accounts (IRAs) is a crucial step towards early retirement. These accounts offer tax benefits and can significantly grow over time due to compound interest. Consider contributing the maximum allowed by law to take advantage of employer matches and tax deductions.
3. Regular Investment Accounts:
In addition to retirement accounts, it is advisable to establish regular investment accounts. These accounts provide flexibility and can be accessed at any age without penalties. They allow for diversified investment options, providing an opportunity for significant wealth accumulation.
4. Real Estate Investments:
Investing in real estate can be an effective way to generate passive income and diversify your investment portfolio. Consider purchasing rental properties or real estate investment trusts (REITs) to earn consistent cash flow and potential appreciation over time.
5. Business Ventures:
Starting or acquiring a business can be an alternative route towards financial independence. Building a successful business can provide both passive income and the freedom to control your time and financial future.
6. High-Yield Savings Accounts:
While not directly related to long-term wealth accumulation, having a high-yield savings account can provide stability and flexibility. These accounts offer higher interest rates than traditional savings accounts, allowing your money to grow over time with minimal risk.
7. Social Security and Pensions:
Lastly, consider the potential income from Social Security and pensions as part of your financial independence plan. While these sources may not be sufficient on their own, they can supplement your investment income, ensuring a more comfortable retirement.
It is important to note that achieving financial independence and retiring early is not a one-size-fits-all approach. It requires careful consideration of your individual circumstances, risk tolerance, and long-term financial goals. Consulting with a financial advisor can help tailor this strategy to your unique situation.
In conclusion, living off investments and retiring early is possible with the right planning and strategy. Establishing an emergency fund, maximizing tax-advantaged retirement accounts, diversifying investments, considering real estate and business ventures, having a high-yield savings account, and considering supplementary income sources will set you on the path towards financial independence. Start early, stay disciplined, and consult with professionals to ensure a successful journey towards the retirement of your dreams.
▸▸▸ https://www.365daystofire.com/
Enrollment is now open for our 365 Days to F.I.R.E. Program
Sign up and get:
◼ Completed F.I.R.E. Plan, Stock Investing Plan, Real Estate Investing Plan, etc. by the end of program
◼ Daily F.I.R.E. Actions
◼ Monthly Live Q&As
◼ Small Accountability Groups
◼ Quarterly Book Club
◼ 3 Meet-ups in Portugal
◼ Private Facebook group
◼ Lifetime access to daily tasks, recorded live Q&As, recorded book club meetings, Facebook group, and resources
◼ Discounted future meetups as 365 Days to F.I.R.E. program alumni
AND, for the Plus Coaching Option
◼ All of the above AND
◼ 365 days of email support: Email us your questions throughout all of 2024! We’ll answer your individual questions!
◼ Monthly Plan Reviews – Send us your baseline plan, stock investing plan, real estate investing plan, saving money plan . . . each plan you work on each month(!!!!) and we’ll send you our feedback!
◼ Additional invites (to bring additional guests) to our meetups on Portugal!
To learn more and enroll NOW, go to: https://www.365daystofire.com/
I thought i was crazy having few accounts
How do you replenish your emergency fund during a 14-month stock market crash?
What website you can recommend to read about investing
Can you please tell me the name of the video that discusses which particular investments to use fo reach account… ROTH vs. Regular brokerage account. I have watchedit before, but can't find it now.
Super late check in from the DMV.
What's your opinion of the this all now relative to today's markets and economic outlook?
Good video. A good video is to delve deeper and go into withdrawal methods and timings amd strategy. Do you reinvest or not reinvest dividends, do you sell stocks to get money and when, when its high… Do you sell enough as you need or one lumpsum . Etc.. some years you might not need 4% and sole years more.
Pretty good content, I might add that rule of 72 for 9 years is a 8% estimate it can fluctuate in either direction. Secondly if you guys have pensions, why not look into seeing if your company will offer to lump some them out and put them in a traditional ira then back door them to your roth ira if you want. This way if you die etc. etc. it does not die with the pension fund and you have all the control. Unless its some type of public pension and you have no options but pensions are becoming a thing of the past in the private sector and very rapidly
Do you have a video that discusses American expats accessing their US-based funds while living in Spain or Portugal? If so, I cannot find it. My wife has raised this concern since there is an exchange rate that adjusts daily & may negatively impact our budget when we become expats.
Great video !!! Glad I found you two. My wife and I have a teacher pension each. Would love to see a pension PLUS investment video. I will look for it, but if you haven't done one PLEASE MAKE ONE, would love to show it to my wife !!!!
Can someone in their 40’s still do this? Or is it too late
I have a stupid question and it is Do you still file Income Tax? I want to make sure I do this right when I finally retire…..because it’s an earned income right?
So i have a old hsa account that I’m no longer allowed to contribute to. So I’ve had this in a bank just sitting there doing nothing but bank interest. I’ve just recently learned this can be invested. I’m moving it to fidelity. So any thought on what to invest this in? Won’t need this money for about 6 years. You 2 are a inspiration and you make me think really hard about Portugal. O and by the way I have 24 k in the hsa and 400k invested in the markets. ThanskMike
This was a great video. A lot of FIRE literature focuses on investing more but not how to manage tax-advantage accounts. Thank you for the help!
What if my employer has a ROTH 401k?
I can't wait to live off my investments once I retire at 30! So excited to become financial free, I'm already starting my journey.
Hi Guys, does your course explain which stocks I should be selling to help fund my retirement income. While I understand the 4% rule, I get stumped when I look at our accounts and then don't know whether I should be selling single stocks, ETF's, index funds, etc. I do know I won't be selling my dividend earning holdings, but that is it. Confused in Toronto LOL. I am around the corner from retirement and I am trying to be prepared and educate myself. PS. I absolutely love your video's, content, life style and relationship. It is so easy to see the love and respect you have for each other in your video's. You are such an inspiration.
Much respect. Index funds work!!!
Great information guys! However, I think it makes more sense to tap Roth assets at the very end because they are the only assets that grow tax free and are withdrawn tax free. A Roth is the only account type that gives you tax free growth AND can be left to your heirs absolutely tax free. I have all of the same account types as you guys, but sadly I won't be retiring until age 60, so I will have full access to all of my accounts when I retire.
My plan is to draw down my 403b (rollover into traditional IRA) first, then my HSA (these funds can be used exactly like a 401k/403b/traditional IRA after age 65), then my Roth IRA. I will use brokerage account at anytime supplementation is needed or to optimize my tax liability at any point along the way, since most taxes are only triggered when assets are sold. I will also defer Social Security until age 70 in order to get the maximum benefit. Yes, it will definitely still be there, although probably slightly restructured. I don't expect to ever need my Roth assets, so that money will likely be left to my family/charity.
Financial investment can be emotionally exhausting/frustrating in a case where inconsistency in trade wins is much. Positive results are guaranteed more if one works with a reliable professional. My most sincere take though!!
Now that you are in retirement, have you modified or adjust your drawdown strategy? If so, can you share?
Thank you for informative video. You mentioned to have 2 years worth expenses set aside. Where do you keep that? In the bank because that has peanut growth.
Excellent video Team.
How does it work when I withdraw money from etf account? Does the money I’ve invested overtime decrease/ increase how long will I wait to take it out
Now that you guys have actually retired, can you do an updated video on how you are ACTUALLY drawing down right now? That would be soooo useful!!! Thank you! Love you guys' videos!!!
I don’t get how you can withdraw from a tax advantaged account early without penalty.
Oh, man. You guys retired at the age I'm getting started. I hope it's not too late for me.
Also, what do you all think about Yorktown short term bond (afmmx)
I’m 24 and just transferred my IRA into vanguard and will put it into vtsax..once my husband and I have more income, our goal is to put as much as possible in it and then see what else we can open
how long did both of you worked for the government? do you have a deferred annuity?